Plum data: One in three women believe they could become a millionaire through investing
Research from smart money app Plum has revealed an ambitious generation of women who anticipate becoming ISA millionaires one day.
The research, which explored attitudes to saving and investing among young people aged 18-44, showed one in three women believing they had the potential to become a millionaire via astute investments in an ISA.
When it comes to investing, the research showed that women on the whole are more keen on the most well-known and accessible forms of investing when compared with their male counterparts. The most popular investment methods considered by women were buying property (32%) and stocks and shares ISAs (29%).
Women were less likely to consider riskier and more unconventional methods, such as investing in single stocks (17% vs 34% of men), cryptocurrency (14% vs 37% of men) and gold (13% vs 25% of men), suggesting that they are more comfortable with tried-and-tested avenues to growing their money.
A factor in their investment choices is the current cost of living crisis, with almost three quarters (72%) of women agreeing the economic climate is making them less likely to take risks. In the face of this, they are choosing to take a cautious approach, which could equip them well to ride out any short-term volatility.
Better education and availability of investment advice online is having a positive impact on women’s interest in investing too, with close to two thirds (60%) of those surveyed finding financial information available online helpful.
However, men were more confident in their ability to save, with two thirds (65%) saying they found saving easy, compared with just below half (48%) of women. This may be in part due to a lack of role models available to women, with one in five (18%) women saying they were not given any financial advice at all by their parents growing up, compared with less than one in ten (8%) of men.
On the other hand, women are less likely to be swayed by the influence of wealthy online entrepreneurs, with just one in ten (10%) finding them very inspiring, compared to one third (30%) of men.
These insights into the financial attitudes and behaviours of men and women highlight the need for banks and other financial institutions to tailor their products and services to better meet the needs of different genders.
Commenting on the findings, Plum’s Investment Product Manager Elise Nunn said: “Risky investors tend to grab the headlines, but our research into the investment habits of younger people has revealed that you don’t have to take loads of risks to feel optimistic about your financial future. In fact, younger investors, especially women, are well aware that slow and steady can be a profitable strategy especially in a volatile environment.”
“Women in particular are seeing the potential of investing to build their wealth, which is great as they’ve been traditionally underserved by investment providers. These results point to a more long-term and strategic approach to investing, which may actually make women better investors overall. They’re less likely to be distracted by gimmicky trends and more focused on what’s important, which is building financial resilience and meeting their goals. At Plum, where a majority of our customers are female, we aim to help them do this via a diversified set of portfolio options.”
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